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Interprovincial Shipping Compliance

InterProvincial Shipping Current Provincial Laws Summary

This document summarizes the provincial laws (including references to statutes, regulations and policies) that are relevant to the sale and shipment of alcohol for personal use by a licensed manufacturer or retailer to an individual consumer who is located in a Canadian province (the “destination province”) that is different from the location of the licensee (i.e. an interprovincial direct to consumer or “DTC” sale).

 

Canadian Alcohol Compliance Series

Title: DTC InterProvincial Shipping of Alcohol – Current Provincial Laws Summary

Date: June 30, 2020

Author: Mark Hicken, BA JD

This document contains a general discussion of the issues noted which was prepared on the date noted above. It does not constitute legal advice and was not prepared for you specifically. If you or your business needs legal advice, you should contact a lawyer for individual and updated advice.

The use of this document is governed by a license that was granted through an annual subscription (available from https://alcaintel.com). Any use other than by a person or company that holds a valid license to use it is prohibited. Redistribution or copying of this document is expressly prohibited. 

Section A: Short Answer

Section B: Discussion of Issues

Accompanying Articles: InterProvincial Shipping Discussion and InterProvincial Shipping Sample Terms of Sale

The following section summarizes the provincial laws that affect DTC transactions within Canada. It provides references to the relevant statutes, regulations and/or policies. It indicates (under the “DTC Permitted?” column) whether or not DTC transactions are permitted for both the consumer and the vendor. It also notes whether the rules are the same for manufacturers and for retailers. If a vendor is considering shipping to a province that does not clearly permit the transaction for both parties, it should read the discussion above in order to understand the relevant laws and risks.

 

Province DTC Permitted? Explanation Notes
MB Yes, for both manufacturers and retailers The law of Manitoba specifically allows for residents of MB to possess alcohol that has been imported from another province[1].

The regulatory authorities in MB have confirmed that DTC shipments are permissible for wine[2] ordered from wineries. They have not done so explicitly for beer or spirits or for purchases from retailers although the relevant MB law is the same for all alcohol and all vendors so there should be no difference.

 

BC

Yes, but only for Canadian wine ordered from the winery

 

The laws of BC[3] specifically allow for residents of BC to possess Canadian wine that has been purchased directly from a winery in another province (including wine that is shipped).

The laws of BC[4] do not permit the possession of other alcohol that has been purchased and shipped from another province (i.e. beer, spirits, imported wine, or Canadian wine from a retailer).

 
NS

Yes, but only for Canadian wine ordered from the winery

 

The laws of NS[5] specifically allow for residents of NS to import Canadian wine that has been purchased directly from a winery in another province (including wine that is shipped).

The laws of NS[6] do not permit the purchase of other alcohol that has been shipped from another province (i.e. beer, spirits, imported wine, or Canadian wine from a retailer).

 

 
PEI 

Yes, for both manufacturers and retailers

 

The law of PEI specifically allows its residents to possess alcohol that has been “imported” from other provinces (up to 9 litres of wine, 24.6 litres of beer, 3 litres of spirits per person)[7] The PEI Liquor Commission has indicated that it interprets the word “import” so as to only include “on-the-person” importations (i.e. no shipments). This may not be a reasonable interpretation of the word “import” as used in the legislation since the normal meaning of “import” encompasses shipments. 
SK  Yes, but only for BC wine or craft spirits ordered from the producer 

The laws of Saskatchewan permit DTC shipments but only for certain products and only from BC. These laws allow shipments from BC wineries (up to 9 litres of wine per shipment)[8] and from BC craft distilleries (up to 3 litres of craft spirits per shipment).

The laws of Saskatchewan[9] do not permit the possession of other alcohol (i.e. all products other than BC wine and BC craft spirits) that has been purchased and shipped from another province.

 

In addition, the Saskatchewan laws require that both the recipient consumer obtain an import permit from the SGLA and that the “carrier” (i.e. the delivery company) obtain a delivery permit. The permit requires that the consumer remit a high level of markup to the SGLA following receipt of the shipment. The manufacturer (i.e. the vendor) is not required to obtain a permit[10]
ON  No The law of Ontario has recently been amended to prohibit the possession of liquor that was imported into Ontario from another province unless the importation is made by the LCBO or “under its authority”[11]. However, importations from other provinces by individuals for personal use are permitted but must be made \”on the person\” of the individual (i.e. not shipped). The provision limiting imports to those made by the LCBO or under its authority is scheduled for repeal on July 1, 2021 so, presumably, the Ontario government is planning that an alternate system will be in place by that date. 
AB  Unclear  Alberta law states that adults may \”import\” liquor from other provinces (and other countries) in amounts determined by regulation[12]. The regulation (s.89) makes importation from other provinces \”subject to the policies of the Board\”. The AGLC has set out an importation policy at section 3.27 of its Liquor Agency Handbook manual[13] which restricts importation to amounts that are personally transported (i.e. not shipped). It is not clear whether this \”policy statement\” has a valid basis in Alberta law since it may not be consistent with the language in the Act and the Regulation. 
NL  No The laws of Newfoundland[14] (in respect of all alcohol products) place limitations on the possession of alcohol from other provinces. DTC shipments are not permitted. Residents may bring back limited quantities of alcohol on their person after a trip.  
NB  No The laws of New Brunswick[15] (in respect of all alcohol products) restrict or place limitations on the possession of alcohol from other provinces such that direct to consumer shipments are impractical due to low limits (e.g. 1 bottle of alcohol).  
QC No

The laws of Quebec[16] (in respect of all alcohol products) restrict the possession and transport of alcohol from other provinces such that direct to consumer shipments are not permissible.

 

  

[1] Liquor, Gaming and Cannabis Control Act, s.71.

[2] See https://www.liquormarts.ca/retail-marketing/shipping-canadian-wine-manitoba

[3] Liquor Possession Regulation (Liquor Distribution Act), B.C. Reg. 130/2012.

[4] Liquor Possession Regulation (Liquor Distribution Act), B.C. Reg. 130/2012.

[5] Importing Wine for Personal Use Regulations (Liquor Control Act), NS Reg 267/2015.

[6] Liquor Control Act, s.90.

[7] Liquor Control Act, RSPEI 1988, c. L-14, s.33(2)(b.1).

[8] Alcohol Control Regulations (Alcohol and Gaming Regulation Act), s.58-59 and 71.

[9] Alcohol and Gaming Regulation Act s. 107(2)(e) and Alcohol Control Regulations, s.58-59 and 71.

[10] This approach is problematic since the shipping manufacturer may not know whether the recipient customer has obtained a valid import permit and/or whether the delivery company has a valid permit and/or whether the consumer has subsequently remitted the appropriate markup to the SGLA, all of which (in combination) would create legality for the transaction.

[11] Liquor Licence Act, RSO 1990, c. L-19, s.33.1 and s.3.1 of Reg. 718 (General Regulation – Liquor Licence Act).

[12] Gaming & Liquor Act, s.86 and Gaming & Liquor Regulation, s.89.

[13] https://aglc.ca/sites/aglc.ca/files/2018-06/18-06-21%20Liquor%20Agency%20Handbook_2.pdf

[14] Liquor Control Act, RSNL 1990, c L-18 s.68. Liquor Limitation Order, s.2.

[15] Liquor Control Act, s.43(c) and 134.

[16] Act Respecting Offences Relating to Alcoholic Beverages, s.95.1. Act Respecting the Societe des Alcools du Quebec, s.37(9.2). Regulation respecting the possession and transportation into Québec of alcoholic beverages acquired in another province or a territory of Canada, s.1-2.

 

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